Under the Private Securities Litigation Reform Act of 1995, publicly held issuers of publicly held securities cannot be held liable when actual corporate earnings fall short of forecasted earnings as long as ________.
A. the forecasts are filed with the SEC.
B. the forecasts had been verified by an independent public accountant.
C. the forecasts are fully disclosed to the public and reasonable in scope.
D. the forecasts are accompanied by meaningful cautionary statements.
E. the forecasts are made in good faith.
Answer: D
You might also like to view...
Debenture bonds are only issued by companies with an excellent credit rating
Indicate whether the statement is true or false
The expected population deviation rate is the auditor's best estimate of the percentage of transactions processed for which a control is not effectively applied
a. True b. False Indicate whether the statement is true or false
Competition, social issues, and timeliness are examples of qualitative factors
Indicate whether the statement is true or false
Jim is investing his money in an account that earns 12 percent annual interest compounded quarterly. If Jim plans on having $500,000 six months from now, how much does he need to invest in the account today?
a. $471,000 b. $530,500 c. $471,500 d. $261,370